The largest cryptocurrency is clearly struggling to consistently overcome the $24,500 barrier. Sellers are pulling Bitcoin south towards $23,000 where the cryptocurrency may face a clash with the 200-session average on the weekly interval:
- The FOMC minutes (8pm) will shed some more light on the further path of hikes and the Fed's plans. We will also learn the position of Fed member Michelle Bowman. Risky assets like cryptocurrencies could come under pressure as uncertainty returns;
- Ethereum has failed to regain bullish momentum and has not climbed back above $2,000 despite no delays in its scheduled September 15 transition to version 2.0, which is electrifying the cryptocurrency market;
- Bitcoin's recovery from the bottom of the bull market has historically been associated with tremendous volatility, and the market tends to repeatedly test important supports and resistances to 'make sure' it sticks the price bottom.
The Fear and Greed index continues to indicate 'fear' which confirms investor uncertainty despite the rebound from June lows. Traditionally, fear supports the supply side and may hold the downward trend line. Source: alternative.me
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Bitcoin's supply reached historic highs and was up more than 25%, confirming that quite a few addresses see the current valuation as a short-term exit opportunity. Source: Glassnode
Bitcoin chart, H4 interval. Bitcoin is still moving inside a downtrend. The key for the major cryptocurrency will be to hold the support of the 200-session moving average on the weekly interval, which currently runs at $23,000. Another sell-off after an attempt to approach $24,500 is indicative of still strong supply. Also worrisome is the divergence of the MACD from the RSI, which in the past has been indicative of a recovered advantage for sellers. Source: xStation5
